The 2001 edition of the book described and analyzed Israeli history from a new perspective. It emphasized capital accumulation – the key process in the formation and transformation of power under capitalism. The book examined the evolution of Israeli capitalism, its integration with accumulation processes in and outside the region, and the transnationalization of the country’s ruling class.

The centrepiece of the book is a new political economy: the theory of differential accumulation.

The new edition further explores this theory with two additional chapters: a preface and an epilogue. The epilogue examines the regional and global developments since 2001. It questions the popular explanation of a ‘clash of civilizations’ -- showing that the new wars conform to the theory of differential accumulation and confirm its predictions.

The preface situates the theory of differential accumulation within the broader evolution of political economy. It clarifies key concepts in the development of capital and its political regime, providing background that is missing from the Israeli literature.